Stellantis Delivers Record Net Revenues, Net Profit, Industrial Free Cash Flows for Full Year 2023
*Stellantis Delivers Record Net Revenues, Net Profit, Industrial Free Cash Flows *
*for Full Year 2023*
· *Net revenues of **€189.5** billion, up **6%** compared to 2022, with consolidated **shipment **volumes increasing **7%*
· *Net profit grew **11%** to **€18.6** billion. Adjusted operating income*^*(1) **rose **1%** to **€24.3** billion, with AOI margin of **12.8%*
· *Industrial free cash flows*^*(2) **of **€12.9** billion, an increase of **19%** compared to 2022*
· *Strong balance sheet, with Industrial available liquidity at €61.1 billion *
· *LEV sales up 27% in 2023, with PHEVs at #1 in U.S. and #2 for LEVs in U.S.*^*(3)**; 21% increase in global BEV sales in 2023*
· *Returned €6.6 billion in cash to shareholders in 2023 through dividends and share buybacks, an increase of 53% compared to €4.3 billion in 2022*
· *Dividend proposed **of** €1.55 **per common share,* *increase of approximately 16% compared to* *prior year,* *pending shareholder approval*
· *Annou**ncing 2024 open market share buyback program of €3.0 billion *
“As we just passed the three-year mark since Stellantis' inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds. Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets.”
*Carlos Tavares, CEO* Citroën ë-C3
*(€ million)*
*2023* *2022* *Change* *FY 2024 GUIDANCE*
Revenue backdrop: Supportive
AOI Margin^(1): Double digit minimum commitment
Industrial Free Cash Flows^(2): Positive
*I*
*F*
*R*
*S*
Net revenues 189,544 179,592 +6%
Net profit 18,625 16,779 +11%
Cash flows from operating activities 22,485 19,959 +13%
*N*
*O*
*N *
*- *
*G*
*A*
*A*
*P*
Adjusted operating income^(1) 24,343 24,017 +1%
Adjusted operating income margin^(1) 12.8% 13.4% (60) bps
Industrial free cash flows^(2) 12,858 10,819 +19%
____________________________________________________________________________________________________________________________________
All reported data is unaudited. Reference should be made to the section “Safe Harbor Statement” included elsewhere within this document.
AMSTERDAM, February 15, 2024 - Stellantis N.V. today reported record full year 2023 results. Net revenues grew 6% y-o-y to €189.5 billion, Net profit rose 11% to €18.6 billion, and Industrial free cash flows increased 19% y-o-y to €12.9 billion. Global BEV sales are up 21% y-o-y and LEV sales up are 27% y-o-y, with PHEVs in the U.S. at #1^(3) and #2 for LEVs in the U.S.^(3) Results are in line with Dare Forward 2030 objectives and are supported by the following concrete actions:
*CARE:* Stellantis remains on track to achieve its carbon net zero emission target by 2038^(4). Stellantis reduced its scope 1 and 2 absolute emissions tCO[2] by 20% in 2023 vs Baseline 2021. A constant focus on the customer led to a reduction of vehicle defect rates three months after customer delivery by more than 40%, as compared to 2021. Embracing a circular consumption model, the Company opened its first Circular Economy Hub in Italy, creating a center of excellence aimed at industrializing the recovery and sustainable reuse of materials, and the business realized 18% year-over-year sales growth. The Company launched an employee share purchase plan – Shares to Win – in Italy and France and will extend it to other countries during 2024. As well, more than 600 collective agreements were signed covering approximately 90% of employee across the world. The Stellantis Student Awards celebrated more than 600 family members of employees for dedication to continuous learning and education, and the Stellantis Foundation partnered with CERN to inaugurate the Science Gateway in Geneva, its new outreach center for science education.
*TECH:* To support overall market growth and the electrification push in North America, 18 additional BEVs will be launched in 2024, reaching a total of 48 models by end of 2024. The all-new Citroën ë-C3 starts at €23,300 and is the most competitively priced B-segment EV produced in Europe and the Jeep[®] Avenger, which was awarded European Car of the Year 2023, continues to earn top honors. Stellantis launched the first of four all-new BEV-centric platforms, STLA Medium, on the Peugeot E-3008 with best-in-class range of up to 700 kilometers (435 miles). The second platform, STLA Large, is launching in 2024 with 800 kilometers (500 miles) range and fitted to exceed customer expectations. STLA Large is a highly flexible, BEV-native platform that will serve as the foundation for upcoming global vehicles in the D and E segments, and able to take multiple propulsion systems, including hybrid and internal combustion. Stellantis secured raw materials sourcing through 2027, and signed an agreement with CATL for the supply of LFP battery cells and modules, further expanding its battery chemistries portfolio. Stellantis and Ample established a partnership in battery swapping technology to deliver fully charged EV batteries in less than five minutes. Stellantis joined Symbio and the other shareholders in inaugurating SymphonHy, the first gigafactory in France and Europe's largest integrated site producing hydrogen fuel cells. Stellantis is implementing a multifaceted semiconductor strategy to ensure supply security and drive innovation. SiliconAuto, the 50/50 joint venture with Foxconn, will tailor chips aimed at a new generation of automotive industry vehicle platforms starting in 2026. In 2023, Stellantis Ventures invested in six new startups, and Stellantis signed 49 commercial contracts with new startups.
*VALUE: *Flexibility, execution, resilience and agility remain core tenants of the Stellantis mentality and with its several tech and new model announcements the Company is poised to profitably navigate customer demand, market fluctuations and political shifts. Stellantis delivered continued growth outside Enlarged Europe and North America with the "third engine"^(5) delivering a 13% increase in Net revenues. In China, Stellantis invested €1.4 billion in Leapmotor, a pure play NEV OEM, and now holds approximately 21% equity, giving Stellantis a leading role in supporting their promising growth in China as well as global expansion opportunities through the new Leapmotor International joint venture managed by Stellantis. With it, Stellantis is addressing a white space in its business model and can now benefit from Leapmotor’s competitiveness both in China and abroad. The Stellantis Pro One commercial vehicles achieved market share leadership in EU30 and South America and is the undisputed leader in EU30 BEV sales with 38.8% BEV market share. The business is targeting to achieve global leadership by 2027 with its completely updated and expanded line-up including internal combustion, battery electric, fuel cell hydrogen and range extended variants. The Data-as-a-Service arm, Mobilisights, created innovative solutions and secured strategic agreements through its custom data packages and data streaming offer.
*GUIDANCE AND OUTLOOK: *Building on 2023 momentum, management notes a number of factors could create a supportive revenue backdrop in 2024, including reduced supply and logistical constraints, stabilizing and potentially reduced interest rates, and the benefits of the Company’s expected expansion of its product offering. The Company is reiterating a minimum commitment of double-digit adjusted operating income (AOI) margin in 2024, as well as positive industrial free cash flow, despite macroeconomic uncertainties.
Pending shareholder approval, Stellantis proposes to pay a dividend of €1.55 per common share, an increase of approximately 16% compared to the prior year, and an expected calendar for NYSE, Euronext Milan and Euronext Paris to be as follows: (i) ex-date April 22, 2024, (ii) record date April 23, 2024, and (iii) payment date May 3, 2024. Stellantis will also execute a 2024 open-market share buyback program of €3.0 billion, which includes €0.5 billion of shares repurchased to service share-based compensation and employee share purchase, in 2024.
On February 15, 2024 at 2:00 p.m. CET / 8:00 a.m. EST, a live webcast and conference call will be held to present Stellantis' Full Year 2023 Results. The webcast and recorded replay will be accessible under the Investors section of the Stellantis corporate website at www.stellantis.com. The presentation material is expected to be posted under the Investors section of the Stellantis corporate website at approximately 7:30 a.m. CET / 1:30 a.m. EST on February 15, 2024.
*UPCOMING EVENTS: *Annual General Meeting - April 16, 2024; Q1 Shipments & Revenues - April 30, 2024; Investor Day 2024 - June 13, 2024
*About Stellantis*
Stellantis N.V. (NYSE: STLA/ Euronext Milan: STLAM/ Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep[®], Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com. Contacts: communications@stellantis.com or investor.relations@stellantis.com
FULL YEAR 2023 SEGMENT PERFORMANCE*
NORTH AMERICA ENLARGED EUROPE
€ million, except as otherwise stated 2023 2022 Change € million, except as otherwise stated 2023 2022 Change
Shipments (000s) 1,903 1,861 +42 Shipments (000s) 2,814 2,626 +188
Net revenues 86,500 85,475 +1,025 Net revenues 66,598 63,311 +3,287
AOI 13,298 13,987 (689) AOI 6,519 6,218 +301
AOI margin 15.4% 16.4% (100) bps AOI margin 9.8% 9.8% — bps
· *Shipments* up 2%, mainly due to higher volumes of Jeep Grand Cherokee, Dodge Hornet and Charger, and Ram ProMaster
· *Net revenues* up 1%, primarily due to higher volumes and strong net pricing, largely offset by unfavorable FX translation and mix effects
· *Adjusted operating income *down 5%, primarily due to unfavorable mix, FX and production disruptions and costs related to labor agreements, partially offset by higher net pricing and volumes
· *Shipments* up 7%, driven by Fiat Ducato, all-new Jeep Avenger, Opel Astra, Peugeot 2008 and Alfa Romeo Tonale
· *Net revenues* up 5%, mainly due to increased volume, positive net pricing and favorable mix, partially offset by higher volume with buyback commitments and FX translation impacts
· *Adjusted operating income* up 5%, primarily due to higher net pricing, offset by increased logistic and purchasing costs, as well as higher warranty and R&D costs
MIDDLE EAST & AFRICA SOUTH AMERICA
€ million, except as otherwise stated 2023 2022 Change € million, except as otherwise stated 2023 2022 Change
Combined shipments^(6) (000s) 616 426 +190 Shipments (000s) 879 859 +20
Consolidated shipments^(6) (000s) 443 283 +160 Net revenues 16,058 15,620 +438
Net revenues 10,560 6,453 +4,107 AOI 2,369 2,048 +321
AOI 2,503 1,188 +1,315 AOI margin
14.8%
13.1%
+170
bps
AOI margin 23.7% 18.4% +530 bps
· *Consolidated shipments* up 57%, led by higher volumes of Fiat Doblo Cargo, Fiat Tipo, Citroën C4 X, Peugeot 408 and Fiat Ducato
· *Net revenues* up 64%, primarily due to volume growth, strong net pricing, including pricing actions to offset Turkish lira devaluation, and improved mix, partially offset by negative FX translation effects, mainly from Turkish lira
· *Adjusted operating income* up 111%, mainly due to higher net pricing, volume & mix, partially offset by negative FX transaction and translation effects primarily related to the Turkish lira
· *Shipments* up 2%, led by higher volumes of Fiat Fastback, Citroën C3, Fiat Cronos, Ram Rampage, and Peugeot 208
· *Net revenues* up 3%, due to volume growth and positive net pricing, partially offset by negative FX translation impacts from Argentine Peso, as well as mix
· *Adjusted operating income* up 16%, primarily due to increased vehicle net pricing and volume, more than offsetting negative mix and FX impacts. This excludes the impact of €302 million related to the devaluation of the Argentine Peso resulting from the new government's economic policies
CHINA AND INDIA & ASIA PACIFIC MASERATI
€ million, except as otherwise stated 2023 2022 Change € million, except as otherwise stated 2023 2022 Change
Combined shipments^(6) (000s) 154 205 (51) Shipments (000s) 26.6 25.9 +0.7
Consolidated shipments^(6) (000s) 102 127 (25) Net revenues 2,335 2,320 +15
Net revenues 3,528 4,505 (977) AOI 141 201 (60)
AOI 502 641 (139) AOI margin
6.0%
8.7%
(270)
bps
AOI margin 14.2% 14.2% — bps
· Maintained AOI margin despite lower volumes and FX headwinds through disciplined pricing, favorable mix of higher Ram shipments in IAP, higher Jeep Grand Cherokee shipments in both China and IAP, and cost efficiencies in SG&A and R&D
· Top-line growth on improved volumes, led by Grecale and GranTurismo; lower AOI mainly due to increased amortization of R&D costs from recent launches, higher industrial costs and unfavorable country mix, partially offset by positive nameplate mix and favorable net pricing
(*) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for 2022 have been adjusted accordingly. Refer to page 13 and 14 for additional information
*H2 2023 SEGMENT PERFORMANCE*
*(€ million)* *H2 2023* *H2 2022** *Change*
*I*
*F*
*R*
*S*
Net revenues 91,176 91,593 —%
Net profit 7,707 8,819 (13)%
Cash flows from operating activities 9,092 10,116 (10)%
*N*
*O*
*N*
*-*
*G*
*A*
*A*
*P*
Adjusted operating income^(1) 10,217 11,290 (10)%
Adjusted operating income margin^(1) 11.2% 12.3% (110) bps
Industrial free cash flows^(2) 4,203 5,500 (24)%
NORTH AMERICA ENLARGED EUROPE
€ million, except as otherwise stated H2 2023 H2 2022 Change € million, except as otherwise stated H2 2023 H2 2022 Change
Shipments (000s) 880 902 (22) Shipments (000s) 1,336 1,264 +72
Net revenues 40,584 43,032 (2,448) Net revenues 31,737 31,992 (255)
AOI 5,271 6,304 (1,033) AOI 2,794 2,988 (194)
AOI margin 13.0% 14.6% (160) bps AOI margin 8.8% 9.3% (50) bps
MIDDLE EAST & AFRICA SOUTH AMERICA
€ million, except as otherwise stated H2 2023 H2 2022 Change € million, except as otherwise stated H2 2023 H2 2022 Change
Combined shipments^(6) (000s) 315 227 +88 Shipments (000s)
459
456
+3
Consolidated shipments^(6) (000s) 235 145 +90
Net revenues 5,862 3,414 +2,448 Net revenues 8,495 8,387 +108
AOI 1,285 659 +626 AOI 1,294 1,046 +248
AOI margin 21.9% 19.3% +260 bps AOI margin 15.2% 12.5% +270 bps
CHINA AND INDIA & PACIFIC MASERATI
€ million, except as otherwise stated H2 2023 H2 2022 Change € million, except as otherwise stated H2 2023 H2 2022 Change
Combined shipments^(6) (000s) 64 105 (41) Shipments (000s) 11.3 15.7 (4.4)
Consolidated shipments^(6) (000s) 44 65 (21) Net revenues 1,026 1,379 (353)
Net revenues 1,542 2,353 (811) AOI 20 139 (119)
AOI 208 372 (164) AOI margin
1.9%
10.1%
(820)
bps
AOI margin 13.5% 15.8% (230) bps
(*) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for H2 2022 have been adjusted accordingly. Refer to page 13 and 14 for additional information
Reconciliations - Full Year
Net revenues from external customers to Net revenues and Net profit to Adjusted operating income
2023 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER*^*(*)* *STELLANTIS*
Net revenues from external customers 86,498 66,444 10,560 16,148 3,526 2,335 4,033 *189,544*
Net revenues from transactions with other segments 2 154 — (90) 2 — (68) *—*
*Net revenues* *86,500* *66,598* *10,560* *16,058* *3,528* *2,335* *3,965* *189,544*
*Net profit/(loss)* *18,625*
Tax expense/(benefit) *3,793*
Net financial expenses/(income) *(42)*
*Operating income/(loss)*^*(A)* *22,376*
Adjustments:
Restructuring and other costs, net of reversals^(B) *650* *475* *—* *14* *1* *1* *20* *1,161*
Collective bargaining agreements costs^(C) *428* *—* *—* *—* *—* *—* *—* *428*
Argentina currency devaluation^(D) *—* *—* *—* *302* *—* *—* *—* *302*
Impairment expense and supplier obligations^(E) *—* *47* *—* *—* *154* *—* *—* *201*
Reorganization of financial services^(F) *—* *—* *—* *—* *—* *—* *76* *76*
Takata recall campaign *—* *(44)* *30* *—* *4* *—* *—* *(10)*
Patents litigation^(G) *(20)* *(40)* *—* *(1)* *—* *—* *—* *(61)*
Gains on disposal of equity investments and other assets^(H) *(65)* *(40)* *—* *—* *(57)* *—* *(39)* *(201)*
Other *40* *99* *1* *(43)* *(18)* *—* *(8)* *71*
Total adjustments *1,033* *497* *31* *272* *84* *1* *49* *1,967*
*Adjusted operating income*^*(A)(1)* *13,298* *6,519* *2,503* *2,369* *502* *141* *(989)* *24,343*
________________________________________________________________________________________________________________________________________________________________________________________
(*) Other activities, unallocated items and eliminations
(A) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for 2022 have been adjusted accordingly. Refer to Note 1 for additional information
(B) Primarily related to workforce reductions and includes €243 million relating to the new collective bargaining agreements in North America
(C) Primarily related to past service costs arising from employee benefit plan amendments related to the new collective bargaining agreements in North America. Total cost of €671 million is comprised of €243 million in Restructuring and other costs, net of reversals and €428 million in Collective bargaining agreements costs
(D) Impact of the December 2023 devaluation of the Argentine Peso from the new government's economic policies, comprised of €(197) million in Net revenues, €(147) million in Cost of revenues, and €42 million in Selling, general and other costs
(E) Related to impairments, mainly impairment of research and development assets in China and India & Asia Pacific, and impairment of certain platform assets in Enlarged Europe
(F) Net costs associated with the reorganization of our financial services activities in Europe
(G) Reversal of provisions related to litigation by certain patent owners related to the use of certain technologies in prior periods
(H) Mainly related to gains on disposals of investments and of fixed assets
2022 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER*^*(*)* *STELLANTIS*
Net revenues from external customers 85,474 63,226 6,453 15,640 4,500 2,322 1,977 *179,592*
Net revenues from transactions with other segments 1 85 — (20) 5 (2) (69) *—*
*Net revenues* *85,475* *63,311* *6,453* *15,620* *4,505* *2,320* *1,908* *179,592*
*Net profit/(loss)* *16,779*
Tax expense/(benefit) *2,729*
Net financial expenses/(income) *768*
*Operating income/(loss)*^*(A)* *20,276*
Adjustments:
Restructuring costs and other costs, net of reversals^(B) *56* *1,020* *—* *36* *—* *2* *30* *1,144*
Takata recall campaign^(C) *382* *545* *22* *2* *—* *—* *—* *951*
CAFE penalty rate^(D) *660* *—* *—* *—* *—* *—* *—* *660*
Change in estimate of non-contractual warranties^(E) *—* *294* *14* *3* *3* *—* *—* *314*
Impairment of GAC-Stellantis JV^(F) *—* *—* *—* *—* *297* *—* *—* *297*
Impairment expense and supplier obligations^(G) *99* *92* *—* *45* *—* *—* *1* *237*
Patents litigation^(H) *93* *40* *—* *1* *—* *—* *—* *134*
Write down of FCA Bank investment^(I) *—* *—* *—* *—* *—* *—* *133* *133*
Other^(J) *(24)* *(232)* *(1)* *62* *36* *—* *30* *(129)*
Total adjustments *1,266* *1,759* *35* *149* *336* *2* *194* *3,741*
*Adjusted operating income*^*(A)(1)* *13,987* *6,218* *1,188* *2,048* *641* *201* *(266)* *24,017*
________________________________________________________________________________________________________________________________________________________________________________________
(*) Other activities, unallocated items and eliminations
(A) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for 2022 have been adjusted accordingly. Refer to Note 1 for additional information
(B) Primarily related to workforce reductions, mainly in Enlarged Europe, North America and South America
(C) Extension of Takata airbags recall campaign
(D) Increase in provision related to Model Year 2019 - 2021 CAFE penalty rate adjustment
(E) Further refinements in estimate for warranty costs incurred after the contractual warranty period
(F) Relates to the full impairment of our equity method investment and includes write off of balances relating to loan receivables, trade receivables and capitalized development
expenditures
(G) Primarily impairment expense in Enlarged Europe, mainly related to Russia, as well as North America and South America
(H) Provision related to litigation by certain patent owners related to the use of certain technologies in prior periods
(I) Write down of FCA Bank investment associated with the reorganization of our financial services activities in Europe
(J) Mainly related to release of litigation provisions, changes in ownership of equity method investments, partially offset by net losses on disposals
Diluted EPS to Adjusted diluted EPS^(7)
Results from continuing operations
(€ million, except as otherwise stated) *2023* *2022*
*Net profit attributable to owners of the parent* *18,596* *16,799*
Weighted average number of shares outstanding (000) *3,107,725* *3,140,089*
Number of shares deployable for share-based compensation (000) *24,733* *23,870*
Weighted average number of shares outstanding for diluted earnings per share (000) *3,132,458* *3,163,959*
*Diluted earnings per share (A) (€/share)* *5.94* *5.31*
Adjustments, per above *1,967* *3,741*
Tax impact on adjustments *(452)* *(733)*
Unusual items related to income taxes *—* *(851)*
*Total adjustments, net of taxes* *1,515* *2,157*
Impact of adjustments above, net of taxes, on Diluted earnings per share from continuing operations (B) (€/share) *0.48* *0.68*
*Adjusted Diluted earnings per share*^*(7) **(€/share) (A+B)* *6.42* *5.99*
Cash flows from operating activities to Industrial free cash flows
(€ million) *2023* *2022*
*Cash flows from operating activities* *22,485* *19,959*
Less: Operating activities not attributable to industrial activities *(753)* *211*
Less: Capital Expenditures and capitalized research and development expenditures and change in amounts payable on property, plant and equipment and intangible assets for industrial activities *9,031* *8,938*
Add: Proceeds from disposal of assets and other changes in investing activities *2,152* *500*
Less: Net proceeds related to the reorganization of financial services in Europe^(A) *1,532* *—*
Less: Contributions of equity to joint ventures and minor acquisitions of consolidated subsidiaries and equity method and other investments *2,767* *769*
Add: Net intercompany payments between continuing operations and discontinued operations *—* *—*
Add: Defined benefit pension contributions, net of tax *798* *278*
*Industrial free cash flows*^*(2)* *12,858* *10,819*
________________________________________________________________________________________________________________________________________________________________________________________
(A) The net consideration of €1,634 million for the sale of 50 percent interest held in FCA Bank to Crédit Agricole Consumer Finance S.A. related to industrial activities is offset by payments of €102 million in relation to the transfer of leasing activities.
Debt to Industrial net financial position
(€ million) *December 31, 2023* *June 30, *
*2023* *December 31, 2022*
Debt *(29,463)* *(29,467)* *(27,153)*
Current financial receivables from jointly-controlled financial services companies *767* *985* *321*
Derivative financial assets/(liabilities), net and collateral deposits *20* *14* *52*
Financial securities *6,089* *3,940* *3,527*
Cash and cash equivalents *43,669* *48,978* *46,433*
Industrial Net Financial Position Classified as Held for sale *109* *—* *54*
*Net financial position* *21,191* *24,450* *23,234*
Less: Net financial position of financial services *(8,296)* *(5,347)* *(2,471)*
*Industrial net financial position*^*(8)* *29,487* *29,797* *25,705*
Reconciliations - H2
Net revenues from external customers to Net revenues and Net profit to Adjusted operating income
H2 2023 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER*^*(*)* *STELLANTIS*
Net revenues from external customers 40,582 31,633 5,862 8,539 1,541 1,025 1,994 *91,176*
Net revenues from transactions with other segments 2 104 — (44) 1 1 (64) *—*
*Net revenues* *40,584* *31,737* *5,862* *8,495* *1,542* *1,026* *1,930* *91,176*
*Net profit/(loss)* *7,707*
Tax expense/(benefit) *1,101*
Net financial expenses/(income) *27*
*Operating income/(loss)*^*(A)* *8,835*
Adjustments:
Restructuring and other costs, net of reversals^(B) *336* *223* *—* *—* *1* *1* *6* *567*
Collective bargaining agreements costs^(C) *428* *—* *—* *—* *—* *—* *—* *428*
Argentina currency devaluation^(D) *—* *—* *—* *302* *—* *—* *—* *302*
Impairment expense and supplier obligations^(E) *2* *47* *—* *—* *138* *—* *—* *187*
Reorganization of financial services^(F) *—* *—* *—* *—* *—* *—* *(64)* *(64)*
Takata recall campaign *—* *40* *4* *1* *—* *—* *—* *45*
Patents litigation^(G) *(20)* *(40)* *—* *(1)* *—* *—* *—* *(61)*
Gains on disposal of equity investments and other assets^(H) *(65)* *(40)* *—* *—* *(57)* *—* *(39)* *(201)*
Other *120* *70* *1* *(45)* *(3)* *—* *36* *179*
Total adjustments *801* *300* *5* *257* *79* *1* *(61)* *1,382*
*Adjusted operating income*^*(A)(1)* *5,271* *2,794* *1,285* *1,294* *208* *20* *(655)* *10,217*
________________________________________________________________________________________________________________________________________________________________________________________
(*) Other activities, unallocated items and eliminations
(A) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for H2 2022 have been adjusted accordingly. Refer to Note 1 for additional information
(B) Primarily related to workforce reductions and includes €243 million relating to the new collective bargaining agreements in North America
(C) Primarily related to past service costs arising from employee benefit plan amendments related to the new collective bargaining agreements in North America. Total cost of €671 million is comprised of €243 million in Restructuring and other costs, net of reversals and €428 million in Collective bargaining agreements costs
(D) Impact of the December 2023 devaluation of the Argentine Peso from the new government's economic policies, comprised of €(197) million in Net revenues, €(147) million in Cost of revenues, and €42 million in Selling, general and other costs
(E) Related to impairments, mainly impairment of research and development assets in China and India & Asia Pacific, and impairment of certain platform assets in Enlarged Europe
(F) Net costs associated with the reorganization of our financial services activities in Europe
(G) Reversal of provisions related to litigation by certain patent owners related to the use of certain technologies in prior periods
(H) Mainly related to gains on disposals of investments and of fixed assets
H2 2022 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER*^*(*)* *STELLANTIS*
Net revenues from external customers 43,032 31,951 3,414 8,407 2,350 1,379 1,060 *91,593*
Net revenues from transactions with other segments — 41 — (20) 3 — (24) *—*
*Net revenues* *43,032* *31,992* *3,414* *8,387* *2,353* *1,379* *1,036* *91,593*
*Net profit/(loss)* *8,819*
Tax expense/(benefit) *744*
Net financial expenses/(income) *337*
*Operating income/(loss)*^*(A)* *9,900*
Adjustments:
Takata recall campaign^(B) *382* *7* *—* *—* *—* *—* *—* *389*
Change in estimate of non-contractual warranties^(C) *—* *294* *14* *3* *3* *—* *—* *314*
Restructuring and other costs, net of reversals^(D) *(101)* *401* *—* *3* *—* *2* *1* *306*
Impairment expense and supplier obligations^(E) *81* *88* *—* *—* *—* *—* *1* *170*
Write down of FCA Bank investment^(F) *—* *—* *—* *—* *—* *—* *133* *133*
Other^(G) *38* *(22)* *(1)* *62* *37* *—* *(36)* *78*
Total adjustments *400* *768* *13* *68* *40* *2* *99* *1,390*
*Adjusted operating income*^*(A)(1)* *6,304* *2,988* *659* *1,046* *372* *139* *(218)* *11,290*
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(*) Other activities, unallocated items and eliminations
(A) Share of the profit of equity method investees is included in our Operating income and Adjusted operating income effective January 1, 2023. Comparatives for H2 2022 have been adjusted accordingly. Refer to Note 1 for additional information
(B) Change in estimate related to Takata airbags recall campaign, primarily related to North America
(C) Further refinements in estimate for warranty costs incurred after the contractual warranty period
(D) Primarily related to workforce reductions in Enlarged Europe and a reversal of expense recognized in H1 2022 related to North America
(E) Primarily impairment expense in Enlarged Europe, mainly related to Russia, as well as North America
(F) Write down of FCA Bank investment associated with the reorganization of our financial services activities in Europe
(G) Mainly related to cost for convergence initiatives and litigation, partially offset by gains on disposals
Diluted EPS to Adjusted diluted EPS^(7)
Results from continuing operations
(€ million, except as otherwise stated) *H1 2023* *H2 2023* *H1 2022* *H2 2022*
*Net profit attributable to owners of the parent* *10,923* *7,673* *7,960* *8,839*
Weighted average number of shares outstanding (000) *3,137,744* *3,078,195* *3,136,036* *3,144,076*
Number of shares deployable for share-based compensation (000) *26,063* *25,398* *22,889* *23,380*
Equity warrants delivered to General Motors (000) *—* *—* *69,126* *—*
Weighted average number of shares outstanding for diluted earnings per share (000) *3,163,807* *3,103,593* *3,228,051* *3,167,456*
*Diluted earnings per share (A) (€/share)* *3.45* *2.47* *2.47* *2.79*
Adjustments, per above *585* *1,382* *2,351* *1,390*
Tax impact on adjustments *(66)* *(386)* *(450)* *(283)*
Unusual items related to income taxes *—* *—* *—* *(851)*
*Total adjustments, net of taxes* *519* *996* *1,901* *256*
Impact of adjustments above, net of taxes, on Diluted earnings per share from continuing operations (B) (€/share) *0.16* *0.32* *0.59* *0.08*
*Adjusted Diluted earnings per share*^*(7)** (€/share) (A+B)* *3.61* *2.79* *3.06* *2.87*
Cash flows from operating activities to Industrial free cash flows
(€ million) *H2 2023* *H2 2022*
*Cash flows from operating activities* *9,092* *10,116*
Less: Operating activities not attributable to industrial activities *(542)* *82*
Less: Capital Expenditures and capitalized research and development expenditures and change in amounts payable on property, plant and equipment and intangible assets for industrial activities *4,835* *4,550*
Add: Proceeds from disposal of assets and other changes in investing activities *426* *249*
Less: Net proceeds related to the reorganization of financial services in Europe^(A) *68* *—*
Less: Contributions of equity to joint ventures and minor acquisitions of consolidated subsidiaries and equity method and other investments *1,709* *476*
Add: Defined benefit pension contributions, net of tax *755* *243*
*Industrial free cash flows*^*(2)* *4,203* *5,500*
________________________________________________________________________________________________________________________________________________________________________________________
(A) Additional consideration of €68 million received as earn-out for the sale of 50 percent interest held in FCA Bank to Crédit Agricole Consumer Finance S.A. related to industrial activities
*NOTES*
(1) Adjusted operating income/(loss) excludes from Net profit/(loss) adjustments comprising restructuring and other termination costs, impairments, asset write-offs, disposals of investments and unusual operating income/(expense) that are considered rare or discrete events and are infrequent in nature, as inclusion of such items is not considered to be indicative of the Company's ongoing operating performance, and also excludes Net financial expenses/(income) and Tax expense/(benefit). Effective from January 1, 2023, our Adjusted operating income/(loss) includes Share of the profit/(loss) of equity method investees. The comparatives for the respective periods for 2022 have been adjusted accordingly.
(€ million) *FY 2022 *
*As reported* *Share of profit/(loss) of equity method investees* *Adjustment: impairment of GAC-Stellantis JV* *Adjustment: write down of FCA Bank investment* *FY 2022 *
*As adjusted*
Operating income 20,012 264 — — 20,276
Adjusted operating income 23,323 264 297 133 24,017
Adjusted operating income margin 13.0% — — — 13.4%
(€ million) *H2 2022 *
*As reported* *Share of profit/(loss) of equity method investees* *Adjustment: impairment of GAC-Stellantis JV* *Adjustment: write down of FCA Bank investment* *H2 2022 *
*As adjusted*
Operating income 9,692 208 — — 9,900
Adjusted operating income 10,949 208 — 133 11,290
Adjusted operating income margin 12.0% — — — 12.3%
FY 2022 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER* *STELLANTIS*
Adjusted operating income, as reported 13,989 6,293 1,078 2,048 654 201 (940) 23,323
Share of profit/(loss) of equity method investees (2) (75) 110 — (310) — 541 264
Adjustment: impairment of GAC-Stellantis JV — — — — 297 — — 297
Adjustment: write down of FCA Bank investment — — — — — — 133 133
Adjusted operating income, as adjusted 13,987 6,218 1,188 2,048 641 201 (266) 24,017
H2 2022 (€ million) *NORTH AMERICA* *ENLARGED EUROPE* *MIDDLE EAST & AFRICA* *SOUTH AMERICA* *CHINA AND INDIA & ASIA PACIFIC* *MASERATI* *OTHER* *STELLANTIS*
Adjusted operating income, as reported 6,306 3,026 606 1,046 365 139 (539) 10,949
Share of profit/(loss) of equity method investees (2) (38) 53 — 7 — 188 208
Adjustment: impairment of GAC-Stellantis JV — — — — — — — —
Adjustment: write down of FCA Bank investment — — — — — — 133 133
Adjusted operating income, as adjusted 6,304 2,988 659 1,046 372 139 (218) 11,290
This change was implemented as management believes these results are becoming increasingly relevant due to the number of partnerships Stellantis has recently engaged in, and will continue to engage in in the future, around electrification and other areas critical to the future of mobility.
Unusual operating income/(expense) are impacts from strategic decisions, as well as events considered rare or discrete and infrequent in nature, as inclusion of such items is not considered to be indicative of the Company's ongoing operating performance. Unusual operating income/(expense) includes, but may not be limited to: impacts from strategic decisions to rationalize Stellantis' core operations; facility-related costs stemming from Stellantis' plans to match production capacity and cost structure to market demand, and convergence and integration costs directly related to significant acquisitions or mergers.
(2) Industrial free cash flows is our key cash flow metric and is calculated as Cash flows from operating activities less: (i) cash flows from operating activiti